Americans lose $5.6 billion to crypto scams in 2023

In the United States, scammers exploited cryptocurrency investments to execute fraudulent schemes, resulting in significant financial losses for Americans in 2023. The FBI revealed that individuals suffered losses amounting to $5.6 billion due to crypto scams, marking a 45% increase from the previous year. Among these, investment fraud schemes were particularly prevalent, with reported losses rising from $2.57 billion in 2022 to $3.96 billion in 2023, a staggering 53% increase. The data indicated that individuals aged over 60 represented a notable segment of complaints, with 16,806 submissions and total losses exceeding $1.65 billion. This demographic was particularly vulnerable, with the report highlighting that while younger age groups had more complaints, it was the seniors who faced the greatest financial impact. The exploitation techniques varied, with scammers often establishing trusted relationships with victims and making false promises to recover lost funds. Experts recommend several precautionary measures for individuals considering cryptocurrency investments, emphasizing the importance of utilizing strong, unique passwords and two-factor authentication to safeguard against potential scams. Additionally, it is suggested to keep personal information off the internet to reduce exposure to scammers. As the crypto landscape continues to attract interest, the heightened risk of scams remains a significant concern, prompting financial authorities and experts to urge caution among potential investors, particularly those lacking technological savvy.